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^ C O P Y UNION PACIFIC RAILROAD COMPANY Law Department January 15, 1949 Calvin M. Cory 114 No. Third St. General Attorney Las Vegas, Nevada Mr. E.E. Bennett Los Angeles, C alif. Dear Ed: I return herewith the galley proofs in the Oregon case o f Fullerton v. Central Lincoln People's U tility D istrict, et a l, which I have read with much in terest. I agree that this case may not be on a ll fours with our case, nevertheless i t presents a clea r picture o f the subject involved in our case. I have discussed i t with Bob Jones, the attorney representing the Water D istrict, who was not much impressed with the same. Last night I attended the regular meeting o f the Water D istrict D irectors, as suggested by you. I am sa tisfie d that the d irectors are determined to take over the water company and that they presently fe e l th is w ill have to be done through condemnation. They therefore are retaining Bob Jones as their attorney on a private basis, since his o f f i c i a l duties do not require him to represent the d is t r ic t . Bob Jones states that our Act was prepared by bond attorneys and that there is no doubt o f it s con stitu tion ality nor w ill there be any doubt as to the v a lid ity o f bonds issued without election fo r that purpose. The conclusion of the meeting, so far as I was concerned, came when the d irectors requested Mr. Jones to write a le tte r to the Water Company advising that the d is t r ic t desired to acquire the Water Company, that they would soon engage engineering services fo r the purpose of informing themselves as to the approximate value o f the holdings o f the Water Company preparatory to negotiating fo r it s acq u isition and urging the Water Company to cooperate with the d is t r ic t engineers and with the d is t r ic t directors in order that negotiations may be opened in the near future. I have no doubt but that the d is tr ic t hopes to acquire the company at a figure much less than I t s real value and at this point it seems that we w ill probably go through